Zug Estates: Adjusted profit up in H1
The half-year consolidated result of Zug Estates fell by 14.6 % to CHF 27.9 million. The previous year's figure included a pre-tax gain on disposal of CHF 7.3 million.
By contrast, net profit adjusted for revaluation and special effects increased by 8.6% to CHF 16.8 million. The main reasons for this positive development were higher rental income (+2.3% to CHF 29.8 million), increased income from the Hotel & Catering segment (+142.0% to CHF 6.4 million) and lower real estate expenses (-19.9% to CHF 3.2 million).
The market value of the entire portfolio increased slightly by 0.8% to CHF 1.7 billion primarily due to revaluation effects. The revaluation gain of CHF 12.7 million is due, on the one hand, to the leasing of the S6 property in Suurstoffi and, on the other hand, to a slight reduction in discount rates for individual properties with residential use. In the previous year's period, the revaluation gain of CHF 12.3 million was only marginally lower.
The vacancy rate fell from 4.0 to 3.8% as a result of new leases. With the conclusion of the 10-year lease agreement with Utopia Music for the S6 property in Suurstoffi, the vacancy rate will be further reduced in the second half of the year and will be below 2% by the end of 2022.
Start of construction for Metalli habitat in 2026 at the earliest
For the Metalli habitat project, the drafts of the two development plans Metalli and Bergli are available. It is planned that the cantonal preliminary examination of the two development plans will be initiated in September. Zug Estates currently expects the development plans to be approved in summer 2024 and construction to start in 2026 at the earliest.
Positive outlook 2022
For the year as a whole, Zug Estates expects rental income to rise in the Real Estate division. Real estate expenses will increase slightly in the second half of the year. In the Hotel & Catering segment, the company is "cautiously optimistic"; a further recovery is expected. Overall, the company continues to expect a consolidated result excluding revaluation and special effects of over CHF 30 million for 2022. (aw)
